How to Find a Good Financial Advisor

A professional financial advisor isn’t just a service for the very wealthy. Just because you aren’t rich doesn’t mean that you can’t benefit from the assistance of a financial advisor. The reality is that people who are rich probably stand to benefit less from the advice of a financial professional than people who are in the middle class. Most rich people built their wealth by managing their money well, after all.

If you aren’t in the top 1% of earners, then maybe a few great pointers from someone in-the-know is exactly what you need to reach the next level. Here are some tips about how to find a good financial advisor.

Check Your Network

You might have friends or family members who’ve contacted a financial advisor. Ask people in your network if they know someone personally who provides outstanding service and has a track record of success.

Think About Your Goals

Remember too that there are degrees for financial security. Some people you know personally might have worked with a financial advisor for reasons that are completely different from your own motivations for seeking professional assistance. Make sure you get specifics about how the advisor helped and if he or she is qualified to help you reach your own goals.

Some financial advisors are experts in retirement planning. Others specialize in estate planning. Some advisors help their clients build wealth while others can offer assistance in getting out of debt.

Choosing the right financial advisor means understanding your overall objectives and finding the advisor who has a proven track record of helping clients like you.

Check the Fee Structure

Not all financial advisors charge for their services the same way. Some might charge an hourly fee like attorneys, while others might opt for a commission-based approach.

Remember, the fees you pay the advisor will eat into your overall return on investments. Make sure you account for those costs as your mapping out your financial future.

Ask the Right Questions

When you’re interviewing a financial advisor, there are two questions you should ask right off the bat: Do you adhere to the suitability or fiduciary standard? And what licenses do you hold?

Advisors who follow the fiduciary standard are required by law to do their very best for you and put you first in all their planning efforts. On the other hand, advisors who follow the suitability standard are required by law to provide products that are suitable for you, but not might be the best options for your financial situation.

When it comes to licensing, it’s probably best to find an advisor who has a Series 65 license. If the advisor has a Registered Representative or Series 7 license, then he or she is not properly called an advisor and can’t help with financial planning.

These are the kinds of questions you should discuss with an advisor on the phone. That way, you can quickly eliminate someone who isn’t committed to your best interests.

It can be difficult to find the best advice when it comes to your finances. However, if you don’t exercise due diligence in your search for a financial advisor, you could end up with the same quality of counsel that you get for free on financial advice blogs. That’s why you should take steps to find that advisor who’s best for you.